The Autumn Budget announced that several Stamp Duty Land Tax measures will end on 1 April 2025. This change is expected to impact first-time buyers and has already stimulated the property market, with many choosing to act before the deadline.
The ‘nil-rate’ or 0% bracket - the amount first-time buyers can spend without paying Stamp Duty - will drop from £425,000 to £300,000, which could increase Stamp Duty costs by over £6,000 for buyers purchasing a property for £425,000. Additionally, the 5% rate bracket will decrease from £650,000 to £500,000, potentially raising Stamp Duty by more than £11,000 for first-time buyers.
These changes will also affect other buyers. The amount at which the standard rate of Stamp Duty is payable by those not purchasing their first property is decreasing from £250,000 to £125,000 from the 1 April 2025. Anyone looking to save £2,500 will want to have completed their transaction on their purchase by 31 March 2025.
Those buying a second property will face a 2% higher tax rate in each bracket, on top of the existing surcharge of 3%. These changes could provide a slight advantage for first-time buyers who may not be in such hot competition with landlords and investors.
The impact will be more significant in areas such as London and the South East, where property prices are above average. Since a typical property transaction takes eight to 12 weeks, those considering buying their first or next home are encouraged to start planning now.
If you wish to discuss this further, please do not hesitate to contact Anna Dunn by email: ald@cooperburnett.com or tel: 01892 515022
This blog is not intended as legal advice that can be relied upon and CooperBurnett LLP does not accept any responsibility for the accuracy of its contents.
This blog was originally published in the Tunbridge Wells Business Magazine: https://twbusinessmagazine.com
